THE INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING AND 
REPEAL) ACT, 1993 
___________ 

ARRANGEMENT OF SECTIONS 
___________ 

SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 
3.  Undertaking of the Corporation to vest in the company. 
4.  General effect of vesting of undertaking in the Company. 
5.  Concession, etc., to be deemed to have been granted to the Company. 
6.  Tax exemption or benefit to continue to have effect. 
7.  Guarantee to be operative. 
8.  Provisions in respect of officers and other employees of Corporation. 
9.  Act 18 of 1891 to apply to the books of the Company. 
10.  Shares, bonds and debentures to be deemed to be approved securities. 
11.  Repeal and saving of Act 15 of 1948. 
12.  Repeal and saving. 

1 

 
 
 
 
THE INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING AND 
REPEAL) ACT, 1993 

ACT NO. 23 OF 1993 

[2nd April, 1993.] 

An  Act  to  provide  for  the  transfer  and  vesting  of  the  undertaking  of  the  Industrial  Finance 
Corporation of India to and in the Company to be formed and registered as a Company under 
the Companies Act, 1956, and for matters connected therewith or incidental thereto and also 
to repeal the Industrial Finance Corporation Act, 1948. 

BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— 

1. Short title and commencement.—(1) This Act may be called the Industrial Finance Corporation 

(Transfer of Undertaking and Repeal) Act, 1993. 

(2) It shall be deemed to have come into force on the 1st day of October, 1992. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “appointed  day”  means  such  date  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint under section 3; 

(b)  “Company”  means  the  Industrial  Finance  Corporation  of  India  Limited  to  be  formed  and 

registered under the Companies Act, 1956 (1 of 1956); 

(c)  “Corporation”  means  the  Industrial  Finance  Corporation  of  India  established  under                 

sub-section (1) of section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948). 

3.  Undertaking  of  the  Corporation  to  vest  in  the  company.—On  such  date  as  the  Central 
Government may, by notification in the Official Gazette, appoint, there shall be transferred to, and vest in, 
the Company, the undertaking of the Corporation. 

4.  General  effect  of  vesting  of  undertaking  in  the  Company.—(1)  Every  shareholder  of  the 
Corporation  immediately  before  the  appointed  day  shall  be  deemed  to  be  registered  on  and  from  the 
appointed day as a shareholder of the Company to the extent of the face value of the shares held by such 
shareholder. 

(2) The undertaking of the Corporation which is transferred to and which vests in the Company under 
section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all 
properties,  movable  and  immovable,  real  and  personal,  corporeal  and  incorporeal,  in  possession  or 
reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, 
vehicles,  cash  balances,  deposits,  foreign  currencies,  disclosed  and  undisclosed  reserves,  reserve  fund, 
special  reserve  fund,  benevolent  reserve  fund,  any  other  fund,  stocks,  investments,  shares,  bonds, 
debentures,  security,  management  of  any  industrial  concern,  loans,  advances  and  guarantees  given  to 
industrial concerns, tenancies, leases and book debts and all other rights and interests arising out of such 
property  as  were  immediately  before  the  appointed  day  in  the  ownership,  possession  or  power  of  the 
Corporation in relation to its undertaking, within or without India, all books of accounts, registers, records 
and  documents  relating  thereto  and  shall  also  be  deemed  to  include  all  borrowings,  liabilities  and 
obligations of whatever kind within or without India then subsisting of the Corporation in relation to its 
undertaking. 

(3)  All  contracts,  deeds,  bonds,  guarantees,  powers  of  attorney,  other  instruments  and  working 
arrangements subsisting immediately before the appointed day and affecting the Corporation shall cease 
to have effect or to be enforceable against the Corporation and shall be of as full force and effect against 
or in favour of the Company in which the undertaking of the Corporation has vested by virtue of this Act 
and enforceable as fully and effectually as if instead of the Corporation, the Company had been named 
therein or had been a party thereto. 

(4) Any proceeding or cause of action pending or existing immediately before the appointed day by or 
against the Corporation in relation to its undertaking may, as from the appointed day, be continued and 
enforced by or against the Company in which the undertaking of the Corporation has vested by virtue of 

2 

 
this Act as it might have been enforced by or against the Corporation if this Act had not been enacted and 
shall cease to be enforceable by or against the Corporation. 

5. Concession, etc., to be deemed to have been granted to the Company.—With effect from the 
appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to 
the Corporation in connection with the affairs and business of the Corporation under any law for the time 
being in force shall be deemed to have been granted to the Company. 

6. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any 
assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry 
forward  of  any  unabsorbed  depreciation  or  investment  allowance  or  other  allowance  or  loss  has  been 
extended or is available to the Corporation under the Income-tax Act, 1961 (43 of 1961), such exemption, 
assessment or benefit shall continue to have effect in relation to the Company. 

(2) Where any payment made by the Corporation is exempt from deduction of tax at source under any 
provision of the Income-tax Act, 1961 (43 of 1961), such exemption will continue to be available as if the 
provisions of the said Act made applicable to the Corporation were operative in relation to the Company. 

(3) The transfer and vesting of the undertaking or any part thereof in terms of section 3 shall not be 
construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of 
capital gains. 

7. Guarantee to be operative.—Any guarantee given for or in favour of the Corporation with respect 

to any loan, lease finance or other assistance shall continue to be operative in relation to the Company. 

8.  Provisions  in  respect  of  officers  and  other  employees  of  Corporation.—(1)  Every  officer  or 
other  employee  of  the  Corporation  (except  a  Director  of  the  Board,  Chairman  or  Managing  Director) 
serving in the employment immediately before the appointed day shall, in so far as such officer or other 
employee is employed in connection with the undertaking which has vested in the Company by virtue of 
this  Act,  become,  as  from  the  appointed  day,  an  officer  or,  as  the  case  may  be,  other  employee  of  the 
Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon 
the same terms and conditions, with the same obligations and with the same rights and privileges as to 
leave,  leave  fare  concession,  welfare  scheme,  medical  benefit  scheme,  insurance,  provident  fund,  other 
funds,  retirement,  voluntary  retirement,  gratuity  and  other  benefits  as  he  would  have  held  under  the 
Corporation if its undertaking had not vested in the Company and shall continue to do so as an officer or, 
as the case may be, other employee of the Company or until the expiry of a period of six months from the 
appointed day if such officer or other employee opts not to continue to be the officer or other employee of 
the Company within such period. 

(2)  Where  an  officer  or  other  employee  of  the  Corporation  opts  under  sub-section  (1)  not  to  be  in 
employment or service of the Company, such officer or other employee shall be deemed to have resigned. 

(3) Notwithstanding anything contained in the  Industrial Disputes Act, 1947 (14 of 1947) or in any 
other law for the time being in force, the transfer of the services of any officer or other employee of the 
Corporation to the Company shall not entitle such officer or other employee to any compensation under 
this Act or under any other law for the time being in force and no such claim shall be entertained by any 
court, tribunal or other authority. 

(4) The officers and other employees who have retired before the appointed day from the service of 
the Corporation and are entitled to any benefits, rights or privileges shall be entitled to receive the same 
benefits, rights or privileges from the Company. 

(5)  The  trusts  of  the  provident  fund  or  the  gratuity  fund  of  the  Corporation  and  any  other  bodies 
created  for  the  welfare  of  officers  or  employees  would  continue  to  discharge  their  functions  in  the 
Company as was being done hitherto in the Corporation and any tax exemption granted to the provident 
fund or the gratuity fund would continue to be applied to the Company. 

(6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) or in 
any  other  law  for  the  time  being  in  force  or  in  the  regulations  of  the  Corporation,  no  Director  of  the 
Board, Chairman, Managing Director or any other person entitled to manage the whole or substantial part 
of  the  business  and  affairs  of  the  Corporation  shall  be  entitled  to  any  compensation  against  the 

3 

 
Corporation  or  the  Company  for  the  loss  of  office  or  for  the  premature  termination  of  any  contract  of 
management entered into by him with the Corporation. 

9. Act 18 of 1891 to apply to the books of the Company.—The Company shall be deemed to be a 

bank for the purposes of the Bankers’ Books Evidence Act, 1891. 

10.  Shares,  bonds  and  debentures  to  be  deemed  to  be  approved  securities.—Notwithstanding 
anything contained in any other law for the time being in force, the shares, bonds and debentures of the 
Company  shall  be  deemed  to  be  approved  securities  for  the  purposes  of  the  Indian  Trusts  Act,  1882         
(2 of 1982), the Insurance Act, 1938 (4 of 1938) 1***. 

11.  Repeal  and  saving  of  Act  15  of  1948.—(1)  On  the  appointed  day,  the  Industrial  Finance 

Corporation Act, 1948 shall stand repealed. 

(2)  Notwithstanding  the  repeal  of  the  Industrial  Finance  Corporation  Act,  1948  (15  of  1948),  the 
Company shall, so far as may be, comply with the provisions of sections 33, 34, 34A, 35 and 43 of the 
Act so repealed for any of the purposes related to the annual accounts of the Corporation. 

12.  Repeal  and  saving.—(1)  The  Industrial  Finance  Corporation  (Transfer  of  Undertaking  and 

Repeal) Ordinance, 1993 (Ord. 5 of 1993) is hereby repealed. 

(2)  Notwithstanding  the  repeal  of  the  Industrial  Finance  Corporation  (Transfer  of  Undertaking  and 
Repeal) Ordinance, 1993 (Ord. 5 of 1993), anything done or any action taken under the said Ordinance, 
shall be deemed to have been done or taken under the corresponding provisions of this Act. 

1. The words and figures “and the Banking Regulation Act, 1949 (10 of 1949) omitted by Act 4 of 2013, s. 17 and The Schedule 

(w.e.f. 17-1-2013). 

4 

 
                                                           
